- Adrien Fenech
Effectuation Chronicle #9: We Do Good, For the Entrepreneur It’s ROYAL
The capitalist ventures of Silicon Valley, as humanists and geography enthusiasts, have given a special name to characterize the situation that start-ups go through to finance their commercialization: Death Valley. For the non-English speakers among us, this name indicates the high failure rate of start-ups in the face of this obstacle. And for good reason, the amounts requested are increasing; public aid is becoming scarcer; investors and bankers are more attentive to the financial performance of companies. A little late in the business plan and hop! For the manager, this may already be the end of the adventure.
In a nutshell. A major part of the investment.
What if, instead of financing against assets or shares in the capital, companies paid a portion of the turnover to its investors? No more guarantee problems and investors are directly interested in the success of the project. This system works like for artists in the music world, where production companies finance the creation of a person and then take a share of the profits made. These financing « royalties » are set up by We Do Good. The Nantes crowdfunding platform, created in 2012 by Jean-David Bar, has already financed more than 40 projects for a total amount of 1.5 million euros. It is now seeking to expand at the national level and thus become the financing alternative for innovative projects under €100,000…
Article to be found in full on Forbes